Apple Drops 9% on Weak Guidance, Downgrade — SkimNews
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- Apple shares fell nearly 7% on Friday, hitting $302.47 in morning trading (down ~9%), after the company's fourth-quarter outlook missed analyst projections
- Apple expects Q4 revenue to grow 9% to 11% year-over-year, compared with the 12.1% growth analysts had forecast
- Apple projected iPhone revenue to rise by a mid-teens percentage, with Services growth tracking similar to fiscal Q3 excluding foreign-exchange effects
- Apple warned currency movements could reduce quarterly revenue growth by about 250 basis points and flagged supply limitations, particularly for memory components
- GF Securities analyst Jeff Pu downgraded Apple to Hold, citing valuation and demand risks from higher memory costs, and set a $369 price target
- Pu noted Apple's shares were trading above 30 times estimated fiscal 2027 earnings at the time of the downgrade call
Why it matters: Apple's 9-11% Q4 growth guide trails the 12.1% consensus by a meaningful margin, and a ~250 basis-point FX drag plus memory supply constraints threaten to squeeze margins even if iPhone hits its mid-teens lift. The downgrade — citing a 30x fiscal 2027 earnings multiple — frames the sell-off as both a guidance miss and a valuation reset.
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